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Wow - this French 'rogue trader' (that is how the French news referred to him last night) was some dude. I don't believe a word of it; if it was true, then the problems at Société Générale are so profound that they should not be entrusted with a single centime. Their entire Board should be replaced - a troup of chimpanzees or a nice cheese platter would do a better job (if the news is true, which I doubt).
Let's get this straight: the MainSwamp media (who are such profoundly ignorant whip-kissers that they think that the wankfest at Davos is worth reporting on) would have you believe that a single trader whose entire remuneration package (including bonuses) was 100k euro, had such free rein that he could rack up positions with aggregate losses of A$9 bill, with nobody noticing. (To get to an aggregate loss of A$9 bill, you need an actual position larger than that, no?)
A bank with owners equity of about $20 billion, and its processes are so poor that such a thing could happen? The Banque de France - who audits every bank every year, and knows if an individual Frenchman passes a bad cheque - knew nothing of it?
Sorry lads - no sale.
What has happened here, I bet, is that SocGen has found an internal culprit, and is hanging as large an amount on him as they think they can get away with. So this geezer might have sent $100 mill to Money Heaven - that amount could possibly be hidden for a week or so - and the Bank has used him as a scapegoat and has attributed half its subprime-related losses to him rather than the subprime book.
It is a variant of what Murray Rothbard pointed out about Presidents who go against the wishes of the Rockefeller/Morgan agenda... they get knocked off, but it's always by a lone nut. Because if it's a lone nut, the public can compartmentalise the issue ("Whew... I'm glad they caught that lone nut and that there was no issue more profound than a dodgy upbringing...") and anyone who presents a heterodox view is branded a conspiracy theorist (like all those who accused the Johnson administration of deliberate fabricating of the Tonkin Gulf incident... it was made clear just a month ago that those people have been right all along).
I had the same sense during the NAB Rogue Trader thing a few years back - interesting that the moment they had those guys in the bag, the rumoured losses from their disastrously stupid purchase of HomeSide magically reduced... washed away like sins in the face of the Blood ofthe Lamb. I once got to talk to one of the team who were at the centre of the thing, and he said the timing was convenient for the bank and that the public would never know the difference (and if there was an exposé in five years time nobody would even remember it).
How is it, when households are taxed to the point of exhaustion in the name of the provision of security, that government agencies tasked with oversight of banks so routinely drop the ball? (Not that I think that government has any role whatsoever in regulating anything - they can't afford talented people, for a start).
Well, I'll tell you why. it's good old 'capture theory'. If the banks spot a regulator who seems to have half a brain, they immediiately hire them out of the regulator, at a salary that would make your eyes bleed if you were an ASO6 in the Public Service.
Problem solved; now you've got a useless former bureaucrat on your books, bot on the plus side he probably has enough contacts at the regulator to prevent any serious digging. (OK, 'or she'... sheeesh..).
Major Market Indices
The broad market - the All Ordinaries (XAO) - went absolutely ga-ga, up a whopping 280.5 points (5.00%), finishing at 5886.3 points. The index hit its intraday high at the close, while the low for the day was set at the open (the low once all stocks were actually open was 5700). It was a genuine, bona fide, coast-to-coast rally.
Total volume traded on the ASX was 1.78 billion units, 4% above its 10-day average. The ASX's daily listing of all stocks included 1461 different 3-letter FPO's which traded (i.e., had non-zero trade volume). Of these, 986 issues rose, with volume in rising issues totalling 1.48 billion units. Conversely (or even contrariwise), 238 stocks felt the sting of red ink, with aggregate declining volume of 133.2 million shares.
Of the 478 All Ordinaries components, 388 rose while 51 fell. Volume was tilted in favour of the gainers by a margin of 13.2:1, with 1.02 billion shares traded in gainers while 76.63 million shares traded in the day's losers.
The Index that forms the cash basis for the SFE's Share Price Index Futures - the S&P/ASX 200 (XJO) - hurtled skyward to the tune of 279.9 points (5.02%), closing out the session at 5860.3 points.
The "heavy hitters" of the Australian market - the ASX 20 Leaders (XTL) - had a bit of a moonshot, stacking on 161.6 points (5.22%), closing out the session at 3258.3 points. The banks in particular did very well - clearly everybody thinks that the soothing noises coming out of Davos are more than just the self-aggrandising groans of a bunch of politicians and other wankers enjoyng a group session of gratification à la main. AS if politicians and their assorted hangers on ever collectively sorted out a problem of this magnitude: they can certainly cause problems of this magnitude, but only Father Time (and Mother Sell-L3-Assets -At-5cInTheDollar) can fix them.
Among the 20 big guns, 19 index components finished to the upside, and of the rest, 1 closed lower for the session. The 21 stocks which make up the index traded a total of 231.84 million units; 19 index components rose, with rising volume amounting to 164.72 million shares, while the sole declining stock traded 23.56 million units. The major percentage gainers within the index were
- Rio Tinto Limited (RIO), +$8.91 (8.21%) to $117.38 on volume of 6.2 million shares;
- Macquarie Group Limited (MQG), +$4.90 (7.65%) to $68.93 on volume of 4.3 million shares;
- AMP Limited (AMP), +$0.60 (7.26%) to $8.87 on volume of 15.5 million shares;
- National Australia Bank Limited (NAB), +$2.35 (6.96%) to $36.10 on volume of 15.7 million shares; and
- St George Bank Limited (SGB), +$1.97 (6.81%) to $30.89 on volume of 3.3 million shares.
On the less salubrious side of the big-cap fence, the following stocks were the worst-performed within the index:
- Telstra (Installment Receipts) (TLSCA), -$0.03 (1.01%) to $2.95 on volume of 23.6 million shares.
At the other end of the market-cap spectrum lie the denizens of the ASX Small Ordinaries (XSO) - the place where non-mania excess returns lie. The small end of the market performed broadly in line with its large-cap counterpart. The Small Ords had a bit of a moonshot, stacking on 170.3 points (5.30%), closing out the session at 3385 points.
Among the stocks that make up the Small Caps index, 167 index components finished to the upside, and of the rest, 19 closed lower for the session.
The 192 stocks which make up the index traded a total of 340.6 million units: volume in the 167 gainers totalling 295.68 million shares, with trade totalling 37.14 million units in the index's 19 declining components. The major percentage gainers within the index were- Rubicon America Trust (RAT), +$0.13 (30.95%) to $0.55 on volume of 1.7 million shares;
- Centro Retail (CER), +$0.11 (30.88%) to $0.45 on volume of 45.7 million shares;
- Rubicon Europe Trust Group (REU), +$0.10 (24.68%) to $0.48 on volume of 3.6 million shares;
- Babcock and Brown Capital Limited (BCM), +$0.63 (20.59%) to $3.69 on volume of 2.5 million shares; and
- OceanaGold Corporation (OGC), +$0.42 (19.81%) to $2.54 on volume of 639.7 thousand shares.
In the red-zone of the little-stock index, the following list represents the biggest downers (in terms of percentage decline):
- Midwest Corporation Limited (MIS), -$0.25 (4.72%) to $5.05 on volume of 20.8 million shares;
- Programmed Maintenance Services Limited (PRG), -$0.19 (4.42%) to $4.11 on volume of 172.8 thousand shares;
- Just Group Limited (JST), -$0.12 (2.98%) to $3.91 on volume of 833.8 thousand shares;
- Citigold Corporation Limited (CTO), -$0.01 (2.56%) to $0.38 on volume of 1.4 million shares; and
- Sylvania Resources Limited (SLV), -$0.06 (2.45%) to $2.39 on volume of 54 thousand shares.
Index Changes
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| XAO | All Ordinaries | 5886.3 | 280.5 | 5 | 1176m |
| XFL | ASX 50 | 5716.2 | 266.5 | 4.89 | 486.8m |
| XJO | ASX 200 | 5860.3 | 279.9 | 5.02 | 975.1m |
| XKO | ASX 300 | 5863.4 | 279.5 | 5.01 | 1091.9m |
| XMD | ASX Mid-Cap 50 | 5994.3 | 309.1 | 5.44 | 264.5m |
| XSO | ASX Small Ordinaries | 3385 | 170.3 | 5.3 | 340.6m |
| XTL | ASX 20 | 3258.3 | 161.6 | 5.22 | 231.8m |
| XTO | ASX 100 | 4754.6 | 225.2 | 4.97 | 751.3m |
Market Breadth
| ASX20 | XTO | XJO | XAO | XSO | Market | |
|---|---|---|---|---|---|---|
| Advances | 19 | 92 | 93 | 387 | 167 | 986 |
| Declines | 1 | 5 | 5 | 51 | 19 | 238 |
| Advancing Volume | 164.7m | 657.5m | 659m | 1.01b | 295.7m | 1.48 billion |
| Declining Volume | 23.6m | 31.5m | 31.5m | 76.6m | 37.1m | 133.2 million |
GICS Industry Indices
Among the 11 industry indices, it was green across the board, as every sector managed to keep its head above water.
The best performing index was the 2-stock Information Technology (XIJ) index, which added 33.6 points (7.27%) to 496 points. The 2 stocks which make up the index traded a total of 3.8 million units; both index components rose, with volume amounting to 3.8 million shares -
- Computershare Limited (CPU), +$0.62 (7.83%) to $8.54 on volume of 3.3 million shares; and
- Iress Market Technology Limited (IRE), +$0.20 (3.11%) to $6.64 on volume of 468 thousand shares.
Second in the index leadership stakes was Energy (XEJ), which gained 865 points (6.59%) to 13995.2 points. The 18 stocks which make up the index traded a total of 54.79 million units; 17 index components rose, with rising volume amounting to 52.46 million shares, while sole declining stock traded 2.34 million units. The major percentage gainers within the index were
- Riversdale Mining Limited (RIV), +$1.46 (19.76%) to $8.85 on volume of 1 million shares;
- Worleyparsons Limited (WOR), +$4.27 (12.09%) to $39.58 on volume of 1.2 million shares;
- AED Oil Limited (AED), +$0.23 (9.35%) to $2.69 on volume of 1.4 million shares;
- Oil Search Limited (OSH), +$0.37 (8.53%) to $4.71 on volume of 8.5 million shares; and
- Queensland Gas Company Limited (QGC), +$0.23 (8.16%) to $3.05 on volume of 2.2 million shares.
The bronze medal for today goes to ASX200 Financials ex Property Trusts (XXJ), which climbed 367.9 points (5.84%) to 6662.6 points. The 28 stocks which make up the index traded a total of 132.87 million units; 27 index components rose, with rising volume amounting to 132.55 million shares, while sole declining stock traded 0.32 million units. The major percentage gainers within the index were
- Babcock and Brown Capital Limited (BCM), +$0.63 (20.59%) to $3.69 on volume of 2.5 million shares;
- Allco Finance Group Limited (AFG), +$0.49 (17.13%) to $3.35 on volume of 6.4 million shares;
- City Pacific Limited (CIY), +$0.49 (16.9%) to $3.39 on volume of 357.9 thousand shares;
- FKP Property Group (FKP), +$0.45 (9.51%) to $5.18 on volume of 724 thousand shares; and
- Australand Property Group (ALZ), +$0.18 (9.42%) to $2.09 on volume of 958.9 thousand shares.
As mentioned above, there were no declining sectors today - so we can move on down to the Asian market stuff now.
Sector Indices
| Code | GICS Sector | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| XIJ | Information Technology | 496 | 33.6 | 7.27 | 4m |
| XEJ | Energy | 13995.2 | 865 | 6.59 | 55m |
| XXJ | ASX200 Financials ex Property Trusts | 6662.6 | 367.9 | 5.84 | 133m |
| XMJ | Materials | 13925.7 | 751.2 | 5.7 | 206m |
| XPJ | Property Trusts | 1905.8 | 99.2 | 5.49 | 261m |
| XNJ | Industrials | 5980.1 | 252.3 | 4.4 | 76m |
| XUJ | Utilities | 6096.1 | 223.7 | 3.81 | 57m |
| XDJ | Consumer Discretionary | 2433.1 | 84.8 | 3.61 | 60m |
| XSJ | Consumer Staples | 8290.3 | 245.8 | 3.06 | 38m |
| XHJ | Healthcare | 9243.1 | 185.1 | 2.04 | 13m |
| XTJ | Telecommunications | 1614.4 | 16.6 | 1.04 | 72m |
All Ordinaries Major Movers
All Ords Volume Leaders
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| CNP | Centro Properties Group | 0.63 | 0.15 | 30.21 | 91.6m |
| CER | Centro Retail | 0.45 | 0.11 | 30.88 | 45.7m |
| TLS | Telstra Corporation Limited. | 4.51 | 0.00 | 0 | 43.6m |
| BHP | BHP Billiton Limited | 36.44 | 1.62 | 4.65 | 35.4m |
| OXR | Oxiana Limited | 3.09 | 0.17 | 5.82 | 27.7m |
All Ords Percentage Gainers
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| AXQ | Allco Max Securities And Mortgage Trust | 0.39 | 0.19 | 95 | 2.1m |
| MFI | Mariner Financial Limited | 0.30 | 0.08 | 33.33 | 2.6m |
| RAT | Rubicon America Trust | 0.55 | 0.13 | 30.95 | 1.7m |
| CER | Centro Retail | 0.45 | 0.11 | 30.88 | 45.7m |
| CNP | Centro Properties Group | 0.63 | 0.15 | 30.21 | 91.6m |
All Ords Percentage Losers
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| NFL | Natural Fuel Limited | 0.10 | -0.01 | -9.09 | 713.5k |
| HIG | Highlands Pacific Limited | 0.11 | -0.01 | -8.33 | 1.4m |
| NHR | National Hire Group Limited | 2.40 | -0.19 | -7.34 | 11k |
| TCQ | Trinity Consolidated Group | 1.46 | -0.10 | -6.13 | 1.3m |
| BGD | Boulder Steel Limited | 0.24 | -0.02 | -6 | 53.2k |
